Aug 21, 2025 - News
Tariffs hit car insurance
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Car insurance rates in California could rise more sharply with prolonged tariffs, a new projection finds.
By the numbers: The average annual cost of full coverage could jump 7% between June and December if tariffs stay in effect, compared to 4% otherwise, per a new report from insurance-comparison platform Insurify.
- The projected cost is $2,711 with tariffs versus $2,635 without them.
California is not one of the most expensive states for car insurance, and it is among the top 10 where rates are expected to rise the fastest, per the report.
Between the lines: Tariffs affect insurance rates by increasing the costs of imported parts needed for repairs.
- Inflation, accident frequency, and claims due to extreme weather — including the LA County wildfires — can also raise rates.